The Indian stock market witnessed a powerful rebound on Monday, with the benchmark Sensex surging 638 points in a rally spearheaded by heavyweight stocks Infosys and Bharti Airtel. This marked the second consecutive session of gains, providing much-needed relief after a prolonged period of decline. The key driver behind the bullish sentiment was the relative stability of the Indian rupee against the US dollar, which eased concerns among domestic investors on Dalal Street.
Key Indices Edge Closer to Record Peaks
The remarkable upswing has placed the market within striking distance of its historic highs. The Sensex concluded the trading session at 85,567 points, which is now less than 1% away from its all-time peak of 86,159 points recorded on December 1. Mirroring this strength, the Nifty on the National Stock Exchange (NSE) also posted a robust gain of 206 points to close at 26,172 points. Similarly, Nifty is also less than 1% shy of surpassing its record high of 26,326 points, also achieved on December 1.
Rupee Stability and Global Cues Fuel Optimism
A significant factor calming the market nerves was the performance of the Indian currency. On Monday, the rupee held steady at 89.58 against the US dollar, showing resilience after a period of volatility. This stability, coupled with positive signals from global markets, played a crucial role in shifting investor mood. Market expert Ajit Mishra of Religare Broking noted that sentiment was "supported by favourable global cues and relative stability in the currency, which helped ease concerns around external pressures."
The trading day began on a strong note, with the Sensex opening over 200 points higher. It touched an intra-day high of 85,601 points before settling just marginally lower, registering a daily gain of 0.8%. Interestingly, this rally occurred despite data from the Bombay Stock Exchange (BSE) showing that foreign portfolio investors (FPIs) were net sellers on the day. This indicates that domestic investors provided the primary thrust behind the market's ascent.
Substantial Wealth Creation for Investors
The bullish session translated into significant wealth generation for market participants. The total market capitalisation on the BSE increased by a staggering over Rs 4 lakh crore in a single day. This impressive jump has pushed the overall market capitalisation on the exchange to approximately Rs 475.3 lakh crore, underscoring the scale of the recovery and renewed confidence among investors.
With key indices hovering near their lifetime highs and stability returning to the currency market, Dalal Street is now keenly watching for fresh triggers that could help the benchmarks breach their previous records. The performance of global markets and continued domestic investment flow will be critical in determining the sustainability of this upward trend.
